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HomeMy WebLinkAboutR23-Economic Development Agency CITY OF SAN BERNARDINO ORIGINAL ECONOMIC DEVELOPMENT AGENCY FROM: Emil A.Marzullo SUBJECT: Third Amendment to the 2003 Disposition and Interim Executive Director Development Agreement between J.R. Watson and Associates Development Corporation and the Redevelopment Agency of the City of San DATE: January 3,2010 Bernardino ----- ------------------------- Svnopsis of Previous Commission/Council/Committee Action(s): On December 9, 2010 Redevelopment Committee Members Johnson, Marquez and Brinker unanimously voted to recommend that the Mayor and Common Council and the Community Development Commission consider this action for approval. __ _ __ ----- ------------------------------------------- Recommended Motion(s): (Community Development Commission) Resolution of the Community Development Commission of the City of San Bernardino approving and authorizing the Interim Executive Director of the Redevelopment Agency of the City of San Bernardino("Agency")to execute a Third Amendment to the 2003 Disposition and Development Agreement by and between the Agency and J.R. Watson and Associates Development Corporation("Developer") Contact Person(s): Brian Turnbull Phone: (909)663-1044 State College Redevelopment Project Project Area(s): Area Ward(s): 5 s Supporting Data Attached: 0 Staff Report 0 Resolution(s)0 Agreement(s)/Contract(s)❑Map(s)❑Letter(s) FUNDING REQUIREMENTS: Amount: $ -0- Source: N/A Budget Authority: N/A Signature: A Fiscal Review: Emil A.M llo, rim Executive Director Lori Panzino- ery t rim e n Icial Officer Commission/Council R\Agendu\ConanD Commisvon\CDC 2011\01-10.111k We Thad Amendm tothe2M DDA SRdoc COMMISSION MEETING AGENDA Meeting Date: 01/10/2011 Agenda Item Number: 0-1l ECONOMIC DEVELOPMENT AGENCY STAFF REPORT THIRD AMENDMENT TO THE 2003 DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN J.R.WATSON AND ASSOCIATES DEVELOPMENT CORPORATION AND THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO BACKGROUND: In 2004, J.R. Watson and Associates Development Corporation (the "Developer") began development of a subdivision of approximately 16.2 acres west of California State University San Bernardino ("CSUSB"). On December 20, 2010, the Community Development Commission of the City of San Bernardino ("Commission") approved an Owner Participation Agreement between the Developer and the Redevelopment Agency of the City of San Bernardino ("Agency") to provide funding assistance for the construction of the Promenade and Shops portion at the overall development. The Promenade and Shops consists of a 10-lot condominium subdivision consisting of 13 Hillside detached live/work units, 6 live/work units and 19 hillside townhomes, 64 cluster detached dwellings, 29 attached town- house units with a recreation center, 35 mixed use units, 1 corporate condominium unit, an approximately 10,000 square foot University Club, a Newman Center for CSUSB students and 15,324 square feet of restaurant and commercial retail space. The Promenade and Shops will have a completed market value ranging from $55 million to $68 million. The project site is located across the street from CSUSB at the northwest corner of Northpark Boulevard and University Parkway in the CG-2, Commercial General land use district. On January 20, 2004, a Clarification Amendment to the DDA was initiated dividing the property in accordance with the Development Code for the City of San Bernardino. After subsequent negotiating,the Second Amendment dated October 17, 2005 was signed on October 28, 2005. At the December 9, 2010, Redevelopment Committee meeting the Committee, in addition to approving the Owner Participation Agreement ("OPA"), discussed a subsequent amendment to the 2003 DDA in the form of the Amendment No. 3 as attached to the Resolution. CURRENT ISSUE: On November 19, 2010, the Developer requested an amendment to the 2003 Disposition and Development Agreement ("2003 DDA") between the Agency and the Developer. The Developer requested a new Partial Assignment for the sale and development of 54 detached dwelling units located at the Pinnacle in the University Park area. This action would replace Toll Bros., Inc., with D.R. Horton Los Angeles Holding Company. In 2007, University Park, LLC (affiliate of J.R. Watson and Associates Development Corp.), was in negotiations with Toll Brothers, Inc., for development of the 54 lots. A Development Agreement Partial Assignment was recorded on August 7, 2007. Toll Brothers will no longer be developing the lots; therefore, a request was submitted for a new Development Agreement Partial Assignment to D.R. Horton or any entity of which D.R. Horton owns more than 51%. Toll Brothers, Inc., has relinquished all rights to the subject property. P\Agendas\Comm Dev CommiuionWDC 2011W 1-10.1 I MWatson Md Amendment m@e 2003 DDASRdm COMMISSION MEETING AGENDA Meeting Date: 01/10/20111 Agenda Item Number: W Economic Development Agency Staff Report JR Watson Third Amendment to the DDA Page 2 The 2003 DDA outlines in Exhibit A-1 Required Building Standards which in many ways greatly exceed the current City of San Bernardino Residential Design Guidelines. In this economic climate the Required Building Standards outlined in the 2003 DDA will significantly impact the feasibility of the Pinnacle project. As a result, the Developer has requested that the DDA Required Building Standards be eliminated from the DDA in its entirety and that the DDA simply require compliance with City Development Code Standards. Finally, the Developer has asked that the time restriction for the completion of the project, which was five years after the closing date, be eliminated due to the recession and its effect on the housing market. ENVIRONMENTAL IMPACT: Amendment of the DDA has no impact under CEQA. This does not meet the definition of a "project" under Section 15378 of the California Environmental Quality Act ("CEQA"), which states that a "Project" means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. FISCAL IMPACT: None. RECOMMENDATION: That the Community Development Commission adopt the attached Resolution. ,- I - M — Emil A. Matzullo,Interim E cutive Director P:\Agendes\Comm D"Commission\CDC2011\01-10.11 IRWatwn Third Amrndmrnt to the 2W3DDASFLdm COMMISSION MEETING AGENDA Meeting Date: 01/1^n0/2011 Agenda Item Number: Page 1 of 1 Fedor—Ma From: Ochiqui_Ma Sent: Tuesday, January 11, 2011 2:30 PM To: Fedor Ma Subject: R22 & R23 Wasana and Mr. Sabo called and said that they will be resubmitting new signed resos for R22 & R23. They will also be submitting a replacement page for the agreement for R22. Page 7 will be replaced: should have been an"or" instead of an"and". They said we should have them by the end of the day. Mayra Ochiqui, CMC Deputy City Clerk City of San Bernardino (909)384-5002 ext. 3207 Apply for your passports at the San Bernardino City Clerk's Office! 1/11/2011 Entered Into Rec, at MCC/CDC Mfg: Ao by:laws Agenda Hem No: by: 1 RESOLUTION NO. City Cleric! Secretary 2 i y of on emardino RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT 4 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE A THIRD AMENDMENT TO THE 2003 DISPOSITION AND 5 DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND 6 J.R. WATSON AND ASSOCIATES DEVELOPMENT CORPORATION ("DEVELOPER") 7 8 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 9 community redevelopment agency duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the California Community Redevelopment Law (the 10 11 "CRL"), codified under Division 24, Part 1 of the California Health and Safety Code commencing 12 at Section 33000 and is authorized to implement infrastructure projects for redevelopment purposes 13 located within the approved redevelopment project areas in the City of San Bernardino (the "City") in accordance with the CRL; and 14 15 WHEREAS, on November 19, 2010, the Developer requested an amendment to the 2003 16 Disposition and Development Agreement("DDA")between the Agency and the Developer; and 17 WHEREAS, the Agency and the Developer agree that the 2003 DDA building standards set 18 forth in Exhibit A-1 Required Building Standards greatly exceed the current City of San Bernardino Residential Design Guidelines; and 19 20 WHEREAS, the Agency and the Developer desire to amend the 2003 DDA by eliminating 21 Exhibit A-1, Required Building Standards and require that the development comply with existing City Development Code Standards; and 22 23 WHEREAS, the Agency and the Developer agree that the time restriction for the 4 completion of the project, which was five (5) years after the closing date, be eliminated due to the 25 recession and its effect on the housing market. NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 1 26 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 27 FOLLOWS: 28 1 P:Uymdn\RnoMbmVtrsoMiovs\2011\0110.11 JR Watwn ThVd AmmMiomlro the]003 DDA CIX'Rmo.doc �� 3 I Section 1. The information and facts set forth in the above recitals of this Resolution 2 are true and correct in all respects. 3 Section 2. The Commission hereby approves the Third Amendment to the 2003 DDA 4 between the Agency and the Developer attached hereto, incorporated herein by reference as Exhibit 5 "A". 6 Section 3. The Interim Executive Director of the Agency is hereby authorized to 7 execute the Agreement on behalf of the Agency in substantially the form attached hereto as Exhibit 8 "A", together with such changes therein as may be approved by the Interim Executive Director of 9 the Agency, Agency Counsel and City Attorney. The Interim Executive Director of the Agency or 10 such other designated representative of the is further authorized to do any and all things 11 and take any and all actions as may be deemed necessary or advisable to effectuate the purposes of 12 the Agreement, and make non-substantive modifications to the Agreement. 13 Section 4. This Resolution shall take effect from and after its date of adoption by this 14 Commission. 15 16 17 18 19 20 21 22 23 4 25 26 27 28 P:USendas\ResolutiansUl olutiws @OII W14 11 M Watson Third Amendmem to the 2003 DDA CDC Reso.doc I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING 2 THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT 3 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE A THIRD AMENDMENT TO THE 2003 DISPOSITION AND 4 DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND J.R. WATSON AND ASSOCIATES DEVELOPMENT CORPORATION 5 ("DEVELOPER") 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a meeting 9 thereof, held on the day of 2011,by the following vote to wit: 10 Commission Members: Aves Nays Abstain Absent 11 MARQUEZ — 12 DESJARDINS — 13 BRINKER 14 — SHORETT 15 — KELLEY _ — JOHNSON — 16 MC CAMMACK 17 — 18 19 Secretary 20 21 The foregoing Resolution is hereby approved this day of 2011. 22 23 Patrick J. Morris, Chairperson Community Development Commission 4 of the City of San Bernardino 25 Approved as to Form: 26 By: 27 Agency Counsel 28 P:AgeedasMmiutiom\Rcwlutiom\2011\0110-11 M Watson Thud A east to tM 2003 DDA CDC R=.&c Y Exhibit"A" PiAge^ %Rmolutiom\Resolmioos`2011\01-10-11 IR Wetson Thh Am Mm to the2003 DDAO Resodoc 4 COPT 1 RESOLUTION NO. 2 RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF 3 THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT 4 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE A THIRD AMENDMENT TO THE 2003 DISPOSITION AND 5 DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND 6 J.R. WATSON AND ASSOCIATES DEVELOPMENT CORPORATION ("DEVELOPER") 7 WHEREAS, the Redevelopment Agency of the City of San Bernardino (the "Agency") is a 8 community redevelopment agency duly created, established and authorized to transact business and 9 exercise its powers, all under and pursuant to the California Community Redevelopment Law (the 10 "CRLU), codified under Division 24, Part 1 of the Califomia Health and Safety Code commencing 11 at Section 33000 and is authorized to implement infrastructure projects for redevelopment purposes ]2 located within the approved redevelopment project areas in the City of San Bernardino (the "City") 13 in accordance with the CRL; and 14 WHEREAS, on November 19, 2010, the Developer requested an amendment to the 2003 15 Disposition and Development Agreement("DDA")between the Agency and the Developer; and 16 WHEREAS, the Agency and the Developer agree that the 2003 DDA building standards set 17 forth in Exhibit A-1 Required Building Standards greatly exceed the current City of San 18 Bernardino Residential Design Guidelines; and 19 WHEREAS, the Agency and the Developer desire to amend the 2003 DDA by eliminating 20 Exhibit A-1, Required Building Standards and require that the development comply with existing 21 City Development Code Standards; and 22 WHEREAS, the Agency and the Developer agree that the time restriction for the 23 completion of the project, which was five (5) years after the closing date, be eliminated due to the 4 recession and its effect on the housing market. 25 NOW, THEREFORE, THE COMMUNITY DEVELOPMENT COMMISSION OF THE 26 CITY OF SAN BERNARDINO DOES HEREBY RESOLVE, DETERMINE AND ORDER, AS 27 FOLLOWS: 28 1 e:weeoauu4.oumoovteaduum\201 1w1aai I m w�zuQa aoroamem m the zooz DDA CDC rtno.� I Section 1. The information and facts set forth in the above recitals of this Resolution 2 are true and correct in all respects. 3 Section 2. The Commission hereby approves the Third Amendment to the 2003 DDA 4 between the Agency and the Developer attached hereto, incorporated herein by reference as Exhibit 5 "A". 6 Section 3. The Interim Executive Director of the Agency is hereby authorized to 7 execute the Agreement on behalf of the Agency in substantially the form attached hereto as Exhibit 8 "A", together with such changes therein as may be approved by the Interim Executive Director of 9 the Agency and Agency Counsel. The Interim Executive Director of the Agency or such other 10 designated representative of the Agency is further authorized to do any and all things and take any 11 and all actions as may be deemed necessary or advisable to effectuate the purposes of the 12 Agreement, including making non-substantive modifications to the Agreement. 13 Section 4. This Resolution shall take effect from and after its date of adoption by this 14 Commission. 15 16 17 18 19 20 21 22 23 4 25 26 27 28 2 P:W Bend as\Rmlwions\Rewiutionst201MI.I1 I I M Watwn Third wdment to the 2003 DDA CDC Reso.doc I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO APPROVING AND AUTHORIZING 2 THE INTERIM EXECUTIVE DIRECTOR OF THE REDEVELOPMENT 3 AGENCY OF THE CITY OF SAN BERNARDINO ("AGENCY") TO EXECUTE A THIRD AMENDMENT TO THE 2003 DISPOSITION AND 4 DEVELOPMENT AGREEMENT BY AND BETWEEN THE AGENCY AND J.R. WATSON AND ASSOCIATES DEVELOPMENT CORPORATION 5 ("DEVELOPER") 6 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community 8 Development Commission of the City of San Bernardino at a meeting 9 thereof,held on the day of 2011, by the following vote to wit: 10 Commission Members: Aves Nays Abstain Absent 11 MARQUEZ — 12 DESJARDINS — 13 BRINKER — SHORETT _ 14 KELLEY — 15 JOHNSON _ 16 MC CAMMACK — 17 18 19 Secretary 20 The foregoing Resolution is hereby approved this day of 2011. 21 22 23 Patrick J. Morris, Chairperson Community Development Commission 4 of the City of San Bernardino 25 Approved as to Form: 26 By: 27 Agencyleouriol 28 3 P:UgeM \ solutions\Rcwlutions\2011\01-10-11 MWammn Third Amendment to the 2001 DDA CDC Reao.dm Exhibit"A" P:\AgendeeUteaoWiam\Reeolutiona @011\01-10-Il JRWataon Third Ammdmemmthe2003 DDACJ R doc 4 RECORDING REQUESTED BY: AND WHEN RECORDED MAIL TO: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO 201 North "E" Street, Suite 301 San Bernardino, CA 92401 THIRD AMENDMENT TO THE 2003 DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND J.R. WATSON & ASSOCIATES DEVELOPMENT CO. DATED JUNE 2, 2003 JANUARY 10, 2011 Third Amendment to Watson DDA-12-24-10 THIRD AMENDMENT TO THE 2003 DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND J.R. WATSON & ASSOCIATES DEVELOPMENT CO. DATED JUNE 2, 2003 THIS THIRD AMENDMENT TO THE 2003 DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO AND J.R. WATSON & ASSOCIATES DEVELOPMENT CO. DATED JUNE 2, 2003 (this "Amendment No. 3") is made this 10`h day of January, 2011, by and between the Redevelopment Agency of the City of San Bernardino ("Agency"), and J.R. Watson & Associates Development Corp. (subject to the clarification and correction of the precise name as provided in the Recitals and in Section 4, herein referred to as the "Developer"). This Amendment No. 3 is made with reference to the following facts: RECITALS WHEREAS, the Agency and the Developer entered into that certain 2003 Disposition and Development Agreement dated June 2, 2003 ("Original DDA"); and WHEREAS, the Agency and the Developer entered into that certain Clarification and Amendment to the Original DDA dated January 20, 2004 ("Clarification" and together with the Original DDA, are sometimes defined herein as the "DDA"); and WHEREAS, the Agency and the Developer entered into that Certain Amendment No. 2 to the DDA, dated as of October 17, 2005, and executed by the last of the parties on October 28, 2005 ("Amendment No. 2"); and WHEREAS, the name of the Developer was previously set forth incorrectly in the DDA, Clarification and Amendment No. 2 as "J.R. Watson & Associates Development Co." rather than the correct name which for all purposes of the DDA and all amendments and clarifications thereto shall be "J.R. Watson & Associates Development Corp." as correctly set forth in this Amendment No. 3; and WHEREAS, the Agency and Developer desire to amend the terms of the DDA, Clarification and Amendment No. 2 pursuant to the terms and conditions as set forth below in order to facilitate the sale and vertical development of the Property (as defined in the DDA). NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: AGREEMENT 1. Revision of Exhibit A-1 to Original DDA. Exhibit A-1 attached to the Original DDA is hereby deleted and replaced in its entirety with Exhibit A-1 attached to 1 P'.\AgendaMAgenda Attar menlsWgenda Attachmenls%Agrmts-Amend 201 1 W1-10-11 JR Watson Third Amendment to the 2003 DDA docx this Amendment No. 3 and incorporated herein by this reference. 2. Revision to the Schedule of Performance. Exhibit G of the Original DDA and Exhibit B of the Clarification are hereby replaced in their entirely with Exhibit B attached to this Amendment No. 3 and incorporated herein by this reference. 3. Effect of Amendment No. 3. Except as otherwise set forth herein, the terms of the DDA, as previously amended, shall remain in full force and effect. 4. Statement of Correct Developer Name. The Agency recognizes and agrees that the correct name of the Developer for all purposes of the DDA, Clarification, Amendment No. 2 and this Amendment No. 3 shall be "J.R. Watson & Associates Development Corp." as further referenced in the Recitals hereto. 5. Entire Agreement. The Original DDA, Clarification, Amendment No. 2 and this Amendment No. 3 shall constitute the entire agreement and understanding between the Agency and the Developer, and the Agency and the Developer intend that the Original DDA, Clarification, Amendment No. 2 and this Amendment No. 3 to be the final expression of their agreement and understanding with respect to the subject matters as addressed therein and in this Amendment No. 3. SIGNATURES APPEAR ON NEXT PAGE 2 P WgendasWgende Atted ments'Apenda AttachmentsWgrmts-Amend 2011\01-10-11 JR Watson Third Amendment to the 2003 DDA.doc, IN WITNESS WHEREOF, the undersigned have executed this Amendment No. 3 as of the date first above written. DEVELOPER: J.R. WATSON &ASSOCIATES DEVELOPMENT CORP., a California corporation By: Name: James R. Watson Title: President AGENCY: REDEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO By: Name: Title: Executive Director APPROVED AS TO FORM: Agency Uunsel 2 RWgendasl Benda Attachments\Agenda Attachments) grmts-Amend 2011101-10-11 JR Watson Third Amendment to the 2003 DDAdo. STATE OF CALIFORNIA ) COUNTY OF ) On the day of 2011 before me, personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity and that by his signature on the instrument the person or entity upon behalf of which the person acted executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (signature) (seal) STATE OF CALIFORNIA ) COUNTY OF ) On the day of 2011 before me, personally appeared , who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity and that by his signature on the instrument the person or entity upon behalf of which the person acted executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. (signature) (seal) 3 P:WgendasV genda AttaohmenWAgende AttachmentsWgrmts-Amend 2011101-10.11 JR Watson Third Amendment to the 2003 DDA.doa EXHIBIT A-1 AMENDED AND RESTATED REQUIRED BUILDING STANDARDS TO REPLACE EXHIBIT A-1 OF THE ORIGINAL DDA Agency Approval of the DDA June 2, 2003 Current Residential Codes, Regulations and Design Guidelines of the City of San Bernardino as the same may exist as of such time when building permits are issued by the City of San Bernardino for the private development and infrastructure comprising the Project pursuant to the DDA. P.WgendasWgenda Atta&mentsWgenda AttaohmehtsWgrmts-Amend 2011\01-10-11 JR Watscn Third Amendment to the 2003 DDA.docx EXHIBIT B AMENDED AND RESTATED SCHEDULE OF PERFORMANCE TO REPLACE EXHIBIT G OF THE ORIGINAL DDA AND EXHIBIT B OF THE CLARIFICATION (Days shall be calendar days, and all dates herein are subject to change due to force majeure in accordance with Section 6.05 of the DDA) Agency Approval of the DDA June 2, 2003 The Developer shall perform the following after receipt of the relevant government approvals and permits: 1. After the date of approval of Amendment No. 3 to the DDA, the Developer shall commence construction of the Project (as approved) within the later to occur of either (i) sixty (60) days after the execution of the Amendment No. 3 to the DDA, or (ii) receipt of approval of building plans from the City of San Bernardino. 2. Complete construction of the Project on or before the 7th anniversary after the execution of the Amendment No. 3 to the DDA. P.XAgendas\Agenda A"chmentslAgenda AttachmentsNgrns.Amend 2 011101-1 0-11 JR Watson Third Amendment to the 2003 DDA.tlacx